asked the Minister for Communications if he will outline the benefits of entering into a contract with Atlantic Satellites-Hughes Corporation for the provision of direct satellite broadcasting; the number of jobs which will be provided within the State, and if RTE and Telecom Éireann will be allowed to participate in this project.
Ceisteanna—Questions. Oral Answers. - Satellite Broadcasting.
17.
I indicated in the course of my reply to another question by the Deputy on this topic on 14 November 1985 that the Government had decided, in principle, to enter into negotiations with Atlantic Satellites plc, 15 Kildare Street, Dublin, 2, with a view to concluding an agreement to allow that company to construct and put into place the necessary infrastructure and hardware which will enable this country to take advantage of direct broadcasting by satellite. I also indicated that the development of this facility is to be fully integrated with the requirements and development plans of Irish users, particularly Radio Telefís Éireann and Bord Telecom Éireann and that the question of entering into a formal contract with the company will not arise until the company have satisfactorily complied with a number of conditions.
In particular the company are required to formulate and submit for approval a detailed business plan and firm proposals to provide maximum assistance and encouragement in relation to the involvement of Irish firms in all aspects of the project. When the company's detailed proposals have been received and evaluated I will be in a better position to assess the detailed benefits that will arise.
At this stage the Government are satisfied that entering into negotiations with Atlantic Satellites plc represents the best prospect for achieving the successful commissioning, launch and operation of an Irish satellite network, which has to be regarded as a high risk venture, without direct or indirect financial risks for the Exchequer and at the same time ensures that Ireland is in a position to derive maximum benefit from the opportunities presented by developments taking place and envisaged in satellite communications.
Let me ask the Minister first the reason why the consortium of Westat, which included RTE and BTE, were not granted the franchise for the placing of a direct broadcasting satellite on 31ºW as allocated to Ireland. Does he not feel with hindsight that that type of consortium, including RTE and BTE, would have a better opportunity to make a successful bid and successful provision of direct broadcasting satellites and would also be responsible for more downstream employment than the decision to allocate this to a new company, Atlantic Satellites Inc. of Kildare Street, and that this company has no track record?
No. The passage of time has confirmed the wisdom of the original decision. I had a meeting with the RTE trade union group only this week in my Department and they expressed relief that the Westat proposal was not accepted because of the potential risks involved for RTE and all who work there. As I said, this is an extremely high risk venture in relation to the provision of the satellite hardware, earth stations etc. It is not a venture in which public money should be involved. That is why Atlantic Satellites got it. Apart from those considerations, Atlantic Satellites were overall the best proposal available to me and my Department.
I also had the opportunity to meet the unions on Tuesday and they may have different attitudes——
This is Question Time.
The Minister mentioned his meeting with the unions. They may have a different attitude as a result of that meeting. Has the Minister any knowledge of the company called Atlantic Satellites Inc.? Is he aware that they have given out a million shares at £10 a share, that they are a public limited company and they will also be issuing shares to the public and that their total share capital today is seven shares issued at £10 taken up, £70? Is he aware that this company have no track record whatsoever in relation to direct satellite broadcasting or the provision of direct satellite broadcasting facilities? Is the Minister saying now that he will be taking 25 per cent of this company at £10 a share, or is 25 per cent of this company being allocated to the Minister without any charge to the Exchequer?
All that Deputy Leyden has stated is known to me and my Department. In answer to the last part of his question, a minimum of 25 per cent share in Atlantic Satellites will be provided to the Exchequer free of charge by that company.
On the other part of my question, is the Minister aware that this company have absolutely no track record in relation to satellite broadcasting? Compare the track record of Westat in relation to BTE and RTE with the great unknown in relation to this firm at this stage when they have no track record whatsoever and basically are a front company for other organisations throughout the world who have made this application to the Minister. I am advising the Minister——
The Deputy should——
——to be terribly cautious about this contract. Furthermore, I ask him not to reach any final arrangements until those arrangements are placed here before the Oireachtas for a full and open debate to allow Deputies to scrutinise this proposal as they scrutinised mining debacles which took place here during former Deputy Justin Keating's performance as Minister for Industry and Commerce.
That debacle pales into insignificance compared with other things like the scandal of CIE's losses over 15 years going up from £3 million to £109 million, and I think that should be the subject of a public inquiry. In relation to this point, no companies in this island have track records in direct broadcasting satellites. The main point here is that this company among others made a submission. Overall theirs was the best submission and the most persuasive take. Of course the difficulties are enormous, but this is an extremely high risk venture and public funds should not be at risk in this case. Risking public funds in this case would not be justifiable. Yes, Atlantic Satellites have gone out to seek the backup of experts around the world in relation to their proposals. I would have thought that the House would be delighted to know that rather than seeing it as somehow a drawback to the proposal.
I take Deputy Leyden's point, that we should be careful. We are being careful. We will be very careful and we will consider his suggestion about a Dáil debate if and when it comes to finalising a contract, but I think that will be some time away.
This is the final supplementary.
In relation to the involvement of the Hughes Corporation of the USA who are now, I believe, a subsidiary of General Motors, will the Minister assure the House that this satellite will not be used for any military purposes by NATO in particular or by the American Government, and that this assurance will be written into any contract? I am concerned that the facilities which will be aboard this satellite could have immense military importance particularly as this satellite will be from a neutral country. That is a very important rider to any agreement which will be made in future.
In relation to the creation of jobs in this country, how many jobs does the Minister envisage will be created here whether in RTE created by the Stafford organisation or BTE? Has he calculated or estimated the number of jobs which will be created as a result of granting this franchise to Atlantic Satellites as opposed to the Westat proposal which was important? Will the Minister comment on the position in RTE where employees face the prospect of redundancies if proposals to be put before him by RTE are accepted? If Westat were given the contract and RTE were involved it would prevent redundancies.
The Deputy should ask a question; he is making a speech.
The Chair has told me that this is my final supplementary and I want to know about the security of the satellite and the number of jobs likely to be created.
The Deputy can be assured that the satellite will be used for normal communications purposes and nothing else. The Hughes Corporation have been responsible for satellites for many years, including Telstar and several others, which have been carrying television pictures across the Atlantic since the sixties. If this satellite project gets off the ground it will be in the same context. On the question of job opportunities we must wait to see if we can conclude a firm agreement with Atlantic Satellite and then see where the opportunities lie. If the project is confirmed opportunities will lie in the telemetry area with people working on the earth stations tracking the satellites. I understand that in that regard we are talking about 40 or 50 high level jobs, probably at Shannon. The second area where opportunities would lie would be in the manufacture of receiving dishes. Presumably it would not only involve the manufacture of dishes for the Irish market but for export. Hundreds of people could be involved in that industry if everything went well. The third area of opportunity would be in programme making for satellite services. That could be the most significant area of all. However, they are all possibilities rather than anything else.